Prime Minister Tony Abbott continued to hose down speculation about a leadership challenge by his deputy Julie Bishop while pushing his revamped childcare package to families in the wake of the failed paid parental leave scheme.

Mr Abbott promised parents his new policy would provide affordable and accessible childcare, although he offered scant detail on the new system.

Speaking at a childcare centre in the Sydney suburb of Russell Lea, he said he would work closely with the early childhood and education sector to deliver an improved system but did not put a timeframe on the plan.

"We are sitting down with the sector to talk through the potential changes," he said. "We want a less complex system, a more accessible system and a more affordable system."

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Asked about his deputy, Julie Bishop, the Prime Minister said "we support each other".Credit:Nick Moir

The Prime Minister said an improved system would allow parents to have both a family and a career and the recommendations made in the Productivity Commission's inquiry into childcare were a "very strong starting point".

Funds from the scrapped paid parental leave scheme will be diverted into the new system, which Mr Abbott said would artificially inflate prices through taxpayer-funded subsidies.

"We want to ensure people do receive all the support that makes childcare usable but we want to make sure it isn't inflationary," he said.

He said further details on the new policy would be released once he had met with the sector's key stakeholders.

"The fact that we are consulting on this policy rather than announcing it is a sign of the different approach from this government this year," he said.

Childcare peak bodies have welcomed the consultation but called on the Prime Minister to release the Productivity Commission's final report from its childcare inquiry and confirm how much additional funding will be re-directed from the paid parental leave scheme.

Mr Abbott said he would not allow leadership speculation to distract him.

When asked about the prospect of a spill, he said: "I am determined to give Australia the certainty and stability that people crave."

On the question of whether deputy Liberal leader Julie Bishop might challenge him for leadership, he responded: "We are friends and we are colleagues and we are part of a leadership team and we support each other."

Parents of children attending the Little Pines Early Childhood Education and Care in Russell Lea said they were glad the Prime Minister visited the centre and listened to their concerns about availability and affordability of care.

Russell Lea lawyer Antionette Migliorino, who has one child at the centre and a baby at home, said finding quality care was a source of stress for many parents.

"The focus needs to be on creating enough spaces in the right areas," she said. "Women are ringing centres crying and begging, saying, 'Please accept my child'."

Ally Addison, whose two children attend the centre, said women should not be excluded from the workforce due to lack of childcare.

"We are very fortunate to be at the centre," she said. "I know many other parents who have to return to work and they end up having to hire a nanny because they can't find childcare."